The Sarb forecast inflation averaging 6% in 2012 and briefly breaching the inflation target of 6%, although mainly on the basis of cost push pressures.

Khan said the Sarb's emphasis on the temporary nature of the inflation breach was, however, all-important. "They have stressed that under these conditions, there is not necessarily a need for the central bank to react. Moreover, inflation is seen peaking at 6.3%, just slightly higher than the inflation target," she said.

"Even though, from this perspective, an imminent rate hike is still far from a done deal (note the slight reduction in Sarb growth forecasts from 3.7% to 3.6%), we expect South African bonds to react adversely to the Monetary Policy Committe (MPC) communiqué," Khan said. She said the bond market had been too complacent about risks, rallying in the last week despite the scheduled MPC meeting.

"With everyone focused on the weakness of growth, the very real inflation risks appeared to have been forgotten. This MPC communiqué will serve as an important reminder, and bearish sentiment should be reinforced next week, when we expect to see a jump in April CPI (consumer inflation) to 4.5% year-on-year from 4.1% previously. --- READ MORE

7 common money moves that can bring bad luck

Plenty of investors have been tempted to buy a hot stock because of the buzz it's generating, as they get swept up in the market fervor; or to sell a stock or mutual fund in fear when the market is plunging. Making emotional short-term decisions with long-term money can be disastrous, however. Investors who bought shares of high-flying Krispy Kreme Donuts saw just how quickly things can change - the stock took a free fall from nearly $50 a share in 2003 to less than $5 in less than two years. You can also ask those who bailed out of stock funds in their 401(k) after the meltdown of 2008-09, only to see the market's value double in the last two years.

Investors should make a plan and have the patience and courage to stick to it, advises Judith Ward, a senior financial planner for T. Rowe Price. "Your objective should be to achieve your goals, not outperform the market, your best friend, or your neighbor with the newest, hottest investment idea." --- READ MORE